Danish multi-asset brokerage company Saxo Bank has agreed to buy all shares of Dutch online bank BinckBank for around EUR 424 million in an all-cash public offer.
Saxo Bank will pay EUR 6.35 per share, representing a premium of 35% to BinckBank’s closing price on Friday.
Motives behind the acquisition
The online trading sector is currently facing multiple challenges, such as increased regulation, changing customer behaviour and technoogy investment requirements. Traditional banks have stepped up their tech capabilities, in an effort to compete with fintech startups and large internet platforms such as Amazon.
“Combining BinckBank with Saxo Bank is a true win-win for all parties. Clients will get better products, prices, platforms and services, employees will benefit from enhanced career opportunities and, importantly, we will gain the necessary scale to further step up investements in technology and in our people. As the investement and trading industry matures and faces new regulation as well as rising expectations for digital client experience, scale, technology and multi-asset capabilities become increasingly key to long-term success,” said Kim Fournais, CEO & founder of Saxo Bank.
The deal is expected to close in the third quarter of the next year. If Saxo Bank buys at least 95% of the shares, BinckBank will be removed from the Euronext Amsterdam listing.
“Since the origins of BinckBank in 2000, we have managed to build a strong position. We have become market leader in the Netherlands and Belgium and are strong challengers in France and Italy. We are confident that by combining BinckBank with Saxo Bank, we will be able to further strengthen our offering and growth in these markets,” said Vincent Germyns, chairman of the BinckBank executive board.
Last month, Saxo Bank rolled out SaxoInvestor, a new platform designed specifically for the growing investor segment. The platform was initially launched in Denmark. It will be internationally introduced in the first quarter of 2019.